They’re Watching 👀
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The two major points of inquiry for the probe are spoofing and wash trading. Spoofing refers to flooding the market with fake orders, tricking other traders in the process while wash trading involves creating false volumes that overvalue the market. Both of these malpractices drive up the prices in the direction desired by the manipulators. For many years, financial regulators have worked hard to eliminate these illicit trading practices from the mainstream markets. However, in the predominantly Wild West crypto scene, it appears spoofing and wash trading is (allegedly) having the run of the mill. Thus, the DOJ is partnering with the Commodity Futures Trading Commission (CFTC) to investigate the matter.Since the crypto boom of 2017, the SEC has stepped up efforts to sanitize the industry, investigating dozens of ICO campaigns. The Commission recently created a fake ICO project to demonstrate how easy it is to defraud investors in the crypto space.
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📌Are we moving closer and closer to regulation as a way to police crypto crime?
⬇️Drop a comment and let us know what you think! #CoinGage
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Read more at: http://bitcoinist.com/u-s-department-of-justice-set-to-probe-suspected-bitcoin-price-manipulation/